02-19-2009, 06:35 PM
Dear,
In fact, party balance may be positive or negative at any reporting period if we used to buy and sell the goods as well.
In my opinion, one should open the party ledgers in the Chart of Account and should record debits (due to sale and purchase return) and credits (due to purchase and sale return)in the specific party ledger account.
At year end we shall see some positive as well as negative balances in party ledgers.
What to do for financial reporting purpose-------------
Total all the debits and report under the account head - A/c Receivable
Total all the credit and report under the the account head - A/c Payable.
Dear if some simple transactions have simple treatement why we refer to IASs. And off course the above, treatement do not contravenes the IASs.
Regards,
*
In fact, party balance may be positive or negative at any reporting period if we used to buy and sell the goods as well.
In my opinion, one should open the party ledgers in the Chart of Account and should record debits (due to sale and purchase return) and credits (due to purchase and sale return)in the specific party ledger account.
At year end we shall see some positive as well as negative balances in party ledgers.
What to do for financial reporting purpose-------------
Total all the debits and report under the account head - A/c Receivable
Total all the credit and report under the the account head - A/c Payable.
Dear if some simple transactions have simple treatement why we refer to IASs. And off course the above, treatement do not contravenes the IASs.
Regards,
*
